Validity refers to ________.
A)ensuring that transactions are not omitted from accounting records
B)ensuring that recorded transactions should have been recorded
C)ensuring that all recorded transactions have been approved before recording
D)ensuring that all recorded transactions have been recorded at the right dollar amount

Question

Quizplus · Accepted Answer

Validity in accounting refers to ensuring that all recorded transactions should have been recorded in the first place. This involves verifying that transactions are accurate, complete, and relevant to the business's financial reporting. Validity does not necessarily relate to the dollar amount or approval of the transaction, as stated in options D and C, respectively. Option A refers to completeness, which is related to validity but not the same.

Validity Refers to ________